Minneapolis Condo Group

The full $8,000 Tax Credit is for first-time-home buyers (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program.

• The maximum credit is $8,000 or 10% of the home purchase, whichever is less.
• The credit is available for homes purchased on or after November 6, 2009 and before June 30, 2010. However contracts must be fully ratified before May 1, 2010.
• To qualify for the full tax credit, married couples’ modified adjusted gross income (MAGI) should be under $225,000 (up from $150,000) and single filers’ MAGI should be less than $125,000 (up from $75,000). Partial tax credits may be available for married couples with MAGI incomes of over $225,000 but under $245,000 and single filers with incomes over $125,000 but under $145,000. If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.
• There is no recapture or repayment clause IF the home is owned for at least 36 months.
• Current Homeowner: An individual (and, if married, an individual’s spouse) who has owned and used the same residence as a principal residence for any 5-consecutive-year period during the 8 year period ending on the date of the purchase of a new principal home will be eligible for a $6,500 tax credit ($3,250 married filing separate).
• The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.
• Home purchase cap of $800,000 (no cap in previous version).
• Special exemptions and extensions for military, members of the Foreign Service of the United States, and employees of the intelligence community: If such individual serves on official extended duty outside of the United States for at least 90 days between December 31, 2008 and May 1, 2010 the deadline for entering into a binding contract to purchase a home will be extended to April 30, 2011. Closing must be before July 1, 2011.
• Credit is only available to purchasers who are at least 18 years old.
• This version now requires that the home purchaser attach a properly executed copy of the settlement statement used to complete the purchase to the tax return.

If you purchased a home between January 1, 2009 and November 6, 2009 you will fall under the original tax credit guidelines.

From the National Association of Realtors -

“The $8,000 first-time home buyer tax credit, which helped home sales rebound this year, was scheduled to expire Nov. 30. The legislation extends it to homes that are under contract by April 30, 2010, and creates a new $6,500 tax credit for owners of existing homes who buy a new principal residence. To take advantage of this credit, buyers must have lived in their old house for at least five of the past eight years.

The legislation also increases the income eligibility limits for the tax credit from $75,000 to $125,000 for individuals, and from $150,000 to $225,000 for joint filers. The cost of the home cannot exceed $800,000.

More than 1.4 million households have benefited from the current tax credit, “the majority of whom have incomes below $50,000,” said Rep. John Lewis, D-Ga.

“This legislation would help even more moderate-income families fulfill the American dream,” he said.

Sen. Johnny Isakson, R-Ga., pushed the Senate to expand the tax credit to “move-up” home buyers. He said this is the last time the tax credit will be extended.

“I urge all Americans, whether they’re first-time buyers who’ve always dreamed of buying a home of their own or someone who’s been gridlocked in the failure of our move-up market, to take advantage of this opportunity,” said Isakson, a former Realtor.

The National Association of Home Builders predicts the extended and expanded tax credit will generate 180,000 additional home sales.

“Today’s action by Congress will further stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.”

“Sales of condos, lofts and townhomes are expected to increase.  This is a perfect opportunity for middle age and seniors to move down or invest in a condo for retirement and receive not only good pricing but a tax credit as well,” said Cheryl Kempenich from Coldwell Banker Burnet.

Escape the hustle and traffic of the cities, and take advantage of the many available homes north of the metro in the Chisago City area. These homes are close enough to the cities to be accessible, yet far enough away to see the stars at night.

Lakeshore properties and homes in the Chisago Lake area are in abundance and at great prices right now. Among Green, Chisago, Lindstrom, South Center and North Center Lakes, there are over 100 listed properties, ranging from $70,000 to just under $900,000.

Schedule a showing or request a list today! Call Judy Bealka at 612-327-4381.

301 Kenwood Parkway, Minneapolis, 55403, Unit 701

Listing Price: $3,295,000

Buys you: Set between the beautiful Kenwood and Lowry Hill communities in Minneapolis, the 301 Kenwood Condominiums are an exquisite choice for luxury condo living. Views from this unit spread out over downtown Minneapolis, including the skyline, the Basilica and the Walker sculpture garden.

Rooms: 4162 sq ft, Billiard Room, Dining Room, First (1st) Bedroom, Kitchen, Laundry, Living Room, Second (2nd) Bedroom, Third (3rd) Bedroom, 4 Bath

Amenities:  Balcony, Exercise Room, Hardwood Floors, Kitchen Window, Multiple Phone Lines, Security System, Tiled Floors, Washer/Dryer Hookup, 2 Indoor Parking Spots 

Courtesy of RE/MAX Results

222 2nd Street SE, Minneapolis, 55414, Unit 1701

Price: $3,999,990

Buys you: Phoenix on the River has both exceptional location and impressive amenities. 655 sq ft of personal outdoor space look out over the river and downtown Minneapolis. The condo is surrounded by the vibrance of St Anthony Main, and the river with all its beauty and walking trails is right outside your door.

Rooms: 6254 sq ft, Dining Room, First (1st) Bedroom, Kitchen, Library, Living Room, Loft, Pantry (Walk-In), Patio, Second (2nd) Bedroom, Third (3rd) Bedroom, Wine Cellar

 Courtesy of Edina Realty

350 St Peter Street, St Paul, 55102, West Unit

Price: $2,975,000 

Buys you: This Manhattan-style two level penthouse home boasts not only a great location in St Paul, but also luxurious size and amenities. Large windows and a rooftop terrace provide sweeping views of the city and nearby cathedral.

Rooms: 6,100 sq ft, Deck, Family Room, First (1st) Bedroom, Kitchen, Living Room, Media Room, Second (2nd) Bedroom, Study, Wine Cellar, Two Bathrooms, Balcony, Deck, Hardwood Floors, Multiple Phone Lines, Natural Woodwork, Tiled Floors  

Courtesy of Coldwell Banker Burnet

Home Sales up in July

According to the pending home sales index of the National Association of Realtor’s, home sales were up 3.2% in July, on top of a 3.6% increase in June. The increase in sales are part of a six month streak in rising home sales.

Julianne Pepitone of CNN Money writes, ” The first-time home buyers tax credit, passed earlier this year as part of the economic stimulus package, is worth 10% of the home purchase price up to $8,000. People who have not owned a home in the previous three years are eligible for the credit.

However, the tax credit expires on Nov. 30 and it usually takes about 90 days to close on a house after a contract is signed. As of Sept. 1, there were only 90 days left before the credit ends.

The average middle-income family can now spend less than 25% of monthly income to buy a median-priced home.
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